PU Mercury News
DA January 31, 2006

HD ASSEMBLY OKS BILL ON PUBLIC FINANCING

HN California Taking Steps Towards Publically Financed Elections

CM [Corporate Crime Reporter comments] Last week, the California State Assembly approved a bill that
would guarantee public funding of elections. If the bill does become law, California would follow
Arizona, Vermont, New Jersey, New Mexico, North Carolina, and most recently Connecticut in moving to
full or partial public financing of elections.

UR http://www.mercurynews.com/mld/mercurynews/news/breaking_news/13753790.htm

AU Edwin Garcia

SACRAMENTO - Voting along a deeply divided partisan line, the state Assembly on Monday approved a
measure that would allow candidates for state office to use taxpayer money to fund their campaigns --
cutting out big bucks special interest donors.

The much-debated California Clean Money and Fair Elections Act of 2006, which passed with 47 of 48
Democrats voting in favor -- and no Republicans in support -- would be a voluntary program. But a
candidate who chose not to participate and accepted outside donations would almost certainly face
scrutiny -- and perhaps voter backlash.

First time in state

``This is a historic victory in that the state of California has never even debated the merits of a
public financing bill previously,'' said Eric Tang with the California Clean Money Campaign. ``I think
there's been a huge groundswell demand from the public to do something about the corruption scandals
that are crippling our faith in public officials.''

The measure, nearly identical to a law in Arizona, next heads to the Senate.

A previous measure failed in the California Legislature for lack of support in 2004, but the new bill,
written by Assemblywoman Loni Hancock, D-El Cerrito, found renewed interest following the November
special election. That election, called by Gov. Arnold Schwarzenegger, cost about $40 million in public
money and incurred record spending -- as much as $300 million -- by the committees battling over the
eight failed ballot measures.

``Polls show that respect for state government has gone down dramatically in the past year,'' Hancock
told her colleagues on the Assembly floor. ``Everyone recognizes we have a system in place that brings
out the worst in almost everybody that participates in it.''

But opponents, even those who favor campaign finance reform, said Hancock's bill raises issues of free
speech and would prompt the spending of public money in controversial ways.

``You identified the problem but you totally missed the mark for the solution,'' Minority Floor Leader
Kevin McCarthy, R-Bakersfield, told Hancock.

``A system like this of public financing compels people to support candidates they otherwise would never
want to support,'' said Assemblyman Mark Wyland, R-Vista.

Limited funding

AB 583 would provide funding -- estimated at $106 million total the first year -- to all candidates for
state office who collect a certain number of $5 donations known as ``qualifying contributions'' to
receive public financing for the primary election.

In addition, candidates would be allowed to receive ``seed money contributions'' of less than $100 from
any registered voter for expenses related to the qualifying phase.

Candidates would then receive a set amount of money that would be a fraction of what it currently costs
to run a campaign.

A total of $100,000 would be given to candidates for an Assembly seat; $200,000 for Senate; $250,000 for
the state Board of Equalization; $1 million for statewide office except attorney general; $1.5 million
for attorney general; and $6 million for governor. The amounts would increase for a contested general
election.

The proposed law also would prohibit participating candidates from receiving private donations other
than qualifying contributions.

Proponents of public finance laws in Arizona and Maine applauded the Assembly's vote. If approved, they
said, the measure would force politicians to answer to constituents and not the large corporations and
political action committees that fuel the vast majority of campaign contributions in California.

It's unclear whether Schwarzenegger would sign the bill into law. Voters, though, may have the final
say: A measure similar to Hancock's bill is being pushed by the California Nurses Association for the
November ballot.

Contact Edwin Garcia at: egarcia@mercurynews.com or (916) 441-4651.

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